Simplified wave analysis. Overview of #USDX (US dollar index) for February 18

Large TF:

The vector of the main trend direction from February last year looks up. The structure of the wave formed the first 2 parts (A + B). Since September, the final part of the wave (C) takes the form of a zigzag.

Small TF:

The incomplete index wave is ascending, starting from January 10th. It formed a sequence (A + B + C). In the framework of the latter part, a downward pullback is expected in the coming days.

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Forecast and recommendations:

This week, the character of the movement of the US dollar is expected to be mainly flat. Before another attempt to break up, some weakening of the position is likely. Strengthening the rates of national currencies in the major pairs at this time will allow traders "bears" to enter the market from more favorable positions.

Resistance zones:

- 97.45 / 97.65

Support areas:

- 96.45 / 96.25

Explanatory notes for the figures: The simplified wave analysis uses waves consisting of 3 parts (A – B – C). On each of the considered scales of the graph, the last, incomplete wave is analyzed. Zones show calculated areas with the highest probability of reversal. The arrows indicate the wave marking by the method used by the author. The solid background shows the formed structure, the dotted - the expected movement.

Note: The wave algorithm does not take into account the duration of tool movements over time. To conduct a trade transaction, you need confirmation signals from the trading systems you use!

The material has been provided by InstaForex Company - www.instaforex.com